Big Lots, the Columbus, Ohio-based discount retailer, has filed for Chapter 11 bankruptcy protection, citing inflation and rising interest rates as key factors undermining its business. The company announced its intent to sell its assets to Nexus Capital Management, a private equity firm, as it seeks to restructure $573 million in long-term debt. Big Lots also secured $707.5 million in financing commitments to sustain its operations during the bankruptcy process. The company had previously revealed plans to close up to 315 stores nationwide, with additional closures likely as it shifts toward a more focused footprint.
“We are proud of the work we do every day across Big Lots to provide our customers with unmistakable value,” said Bruce Thorn, President and Chief Executive Officer. “The actions we are taking today will enable us to move forward with new owners who believe in our business and provide financial stability.” Despite challenges, including 16 consecutive quarters of declining sales, this restructuring aims to provide Big Lots with the opportunity to reorganize and ensure its survival in the retail landscape.
